Procter & Gamble ‘Likely’ To Raise Prices Due to Trump’s Tariffs

Procter & Gamble price hikes are potentially coming. P&G’s leadership claims President Donald Trump’s tariffs will likely raise costs, which may lead to higher prices for consumers.

Even though 90% of P&G products are made in America, the company imports some raw materials, packaging supplies, and a few finished goods from China. Without knowing the full impact of tariffs, estimates of future manufacturing costs can’t be accurately determined, which puts the company is a precarious position as it relates to sourcing and pricing.

In an interview with CNBC, Procter & Gamble CEO Jon Moeller said price increases are “likely” but probably won’t happen until summer. Yet, “we’re also looking at sourcing options,” the executive added. In a conference call with investors, company management also stated that “some level of consumer pricing” is being considered.

On top of tariff concerns, the Charmin maker noted consumers are “more nervous” these days and cutting back. With Procter & Gamble’s products retailing at a higher price point than similar store-branded items, consumers are more likely to choose the cheaper option. According to P&G CFO Andre Schulten, retailers are reporting slower store traffic, with consumers embracing a “wait and see” attitude and “basically looking for value.”

Procter & Gamble Earnings

Procter & Gamble manufactures and sells a wide range of household products, including laundry detergent, toilet paper, and toothpaste. Traditionally, the company has been immune to economic fluctuations as consumers continue to buy necessities regardless of market conditions.

Yet, P&G’s most recent earnings report and outlook paint an unexpected financial picture. With the combination of doubts related to tariffs, a more cautious consumer, and an unpredictable political environment, the Tide maker may need to adjust.

In the fiscal third quarter, P&G earned $19.8 billion, slightly below the $20.1 billion analysts were hoping for. Net income came in at $3.77 billion, or $1.54 per share. Sales volume, which helps measure consumer demand, dropped 1%.

Volume decreased by 2% in P&G’s baby, feminine, and family care segment. The healthcare as well as fabric and home care divisions saw a 1% decline in volume. In the beauty category, sales remained unchanged. The only segment with positive growth was P&G’s grooming business, climbing 1% in the quarter.

For the rest of fiscal year 2025, which ends in July, P&G expects sales to remain flat, compared to earlier projections of 2% to 4% growth. Earnings per share for the year will likely hit $6.72 to $6.82, less than the $6.91 to $7.05 range previously predicted.